A MIXED PROPERTY (MULTI-ASSET) EXCHANGE in a 1031 exchange refers to the exchange of multiple properties of different types (e.g. a combination of residential, commercial, industrial, or agricultural properties) in a single transaction. The exchange must still meet the requirements for a 1031 exchange, including that the properties being exchanged are “like-kind.”
Key-Takeaway
- A mixed property exchange can be complex and may require the services of a qualified intermediary to ensure that all requirements are met.
- The properties being exchanged must still meet the “like-kind” requirement, meaning that they must be of a similar nature or character.
Tips
- Consider the long-term goals and objectives for the exchange and make sure that the replacement properties meet those goals.
- Carefully evaluate the market value and potential income-producing capacity of each replacement property before making a decision to complete the exchange.
Advice
- Consider seeking the advice of a tax professional or real estate expert to ensure that the exchange meets all requirements and is completed successfully.
- Make sure to fully understand the terms and conditions of the exchange, including any fees or costs associated with the transaction.
Recommendations
- Research the market and rental income potential of the replacement properties before making a decision to complete the exchange.
- Make a plan for the management and maintenance of the replacement properties, as multiple properties may require more time and resources.
- Consider seeking out professional assistance from a qualified intermediary or tax professional to ensure that the exchange is completed smoothly and in accordance with all requirements.
